Obama Makes Appointment for PBGC Post

Joshua Gotbaum officially was named director of the Pension Benefit Guaranty Corp. on Wednesday, July 7, with a recess appointment from President Barack Obama.

Gotbaum can serve as director, without Senate confirmation, until the end of 2011, when the next congressional session is set to expire. Under federal law, he can take the post as soon as he is sworn into office.

Gotbaum, an operating partner at Blue Wolf Capital Management, could not be reached for comment, and Caroline Luz, his spokeswoman, declined to comment. Gotbaum was originally nominated for the PBGC post by Obama last November. He was confirmed by the Senate Health, Education, Labor and Pensions Committee and the Senate Finance Committee, but a Senate confirmation vote had been blocked by Sen. Sherrod Brown, D-Ohio, to get the Obama administration to encourage General Motors Co. to enhance its pension commitments to retirees of auto parts manufacturer Delphi Corp.

“I do not question Mr. Gotbaum’s specific qualifications or his commitment to public service,” Brown said in a statement. “However, I am extremely disappointed that the president would place Mr. Gotbaum at the head of the PBGC before ensuring a fair resolution of the outstanding pension issues for all Delphi retirees.”

Obama, in announcing recess appointments for Gotbaum and others Wednesday, said, “It’s unfortunate that at a time when our nation is facing enormous challenges, many in Congress have decided to delay critical nominations for political purposes.”